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Permanent diminution in investments

CA MAULIK (C.A) (937 Points)

09 January 2012

my question is at what point of time,company comes to know that there is a Permanent Diminution in value of long term investment,take for Eg investment in HDFC top 200 or investment in joint ventures or associates?I just want to know the signs of the same ,As methodology of calculation is already there in concerned accounting standard or IFRS..

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CMA Shilpa Shinde (COST ACCOUNTANT) (217 Points)
Replied 09 January 2012

Read the attached article

Attached File : 392647 902844 11543p1125 27.pdf downloaded: 1196 times

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CA MAULIK (C.A) (937 Points)
Replied 10 January 2012

@ Shilps:Thax for the reply but will u plz elaborate the circumstances in which one sholud be sure tht it is a indication of permanent diminution in the value..what r the indicators?

CMA Shilpa Shinde (COST ACCOUNTANT) (217 Points)
Replied 10 January 2012

Dear Maulik,

In attached file you will find related explanation under point A.

There is not a single indicator as such. Management need to consider several factors together to reach at the conclusion abt permanent diminution in invst.

CA MAULIK (C.A) (937 Points)
Replied 11 January 2012

@ Shilpa:Thax for the early reply, but i just want to know that are there any industry specific guidelines,as practically there must be many cosiderations which should be taken in to account..